Top 5 Things You Need Know When Investing in Commercial Real Estate in South Florida
The Sunshine State gets its name for a reason. Florida is a beautiful place to work, live, and play. It has a diverse culture, vibrant cities, and beautiful landscapes from warm water beaches and beautiful reefs to the Everglades Park, the largest subtropical wilderness left in the United States. At the Martinez Team, we are a little bit partial to our home region of South Florida where we have specialized in commercial real estate since 2002. We are passionate about helping businesses find the perfect commercial space that fits their budget and suits their needs. Here are the top five most important things to know when analyzing commercial real estate here in South Florida.
1) You Need a Commercial Real Estate Agent
South Florida is the busiest part of the state with a booming real estate industry. There are a lot of independent agents and residential real estate companies, or companies that do it all. But what you will find is that those companies might lack the expertise of those who focus solely on commercial real estate. Choosing a credible company with over 20 years of experience in South Florida will make the process much easier for you. Most real estate transactions involve negotiating between landlords and sellers. An experienced agent will show you sales or lease comparables, guide you on making a solid first offer, and how to win the bid for the property. This process is fast-paced and requires the right amount of finesse to play your cards in the right way and at the right time.
2) You are investing for the Long-Term
Some people are worried about investing in commercial real estate because many of the initial costs are much higher than residential real estate. However, you will see greater overall returns when you invest in commercial real estate. With so much commercial real estate available in South Florida, and with many companies making their return to the office, now is a good time to invest for the future. As a landlord, you will want reliable tenants who pay on time and respect your property. Businesses don’t like to change locations often since that can also hurt their reputation, so businesses tend to make very reliable, respectful, and long-term tenants.
3) South Florida has a Strong Economy
The economy of Florida ranks within the top 10 in the nation in both economy and fiscal stability, according to US News & World Report. Not only does Florida have a great economy, but South Florida in particular has been maintaining population and business growth for decades. This is a region that is only getting bigger, making it well worth investing in. Commercial real estate investments are structured in a way that gives its investors regular dividends, meaning that the more successful the tenant is the more money you will make. Since Florida has a good economy, that means people are spending money. This means that businesses are making more money, and subsequently that you, as a commercial investor, have the potential for more income and a greater return on your investment than if you were to invest in other parts of the country.
4) Florida Offers Tax Incentives for Businesses
There’s a reason that so many businesses are moving from states like California to Florida. The state as a whole has no personal income tax, estate tax, or inheritance tax, and is often considered to be the nation’s top tax climate for businesses. South Florida is home to some of the strongest commercial markets in the nation. When you rent a residential property, it is not common practice for tenants to cover property taxes or insurance costs, however, depending on the type of lease and property that you have a commercial tenant can cover these costs for you.
5) The World has Eyes on South Florida
From a business perspective, Florida is one of the most international places in the world. The U.S. has ranked #1 worldwide for Foreign Direct Investment (FDI), with Florida ranking in the top five among U.S. states to receive FDI. Additionally, Florida ranks as one of the top states in the country where foreigners buy and sell commercial real estate, particularly in cities like Miami. In other words, the world has their eyes and hands on the commercial real estate industry in South Florida. Getting into a lucrative market with a promising forecast of good returns is always a smart investment.
Need A New Home for Your Business?
Sometimes you just need a change, and South Florida is one of the best places in the world for commercial real estate. If you are in need of buying, selling, or leasing commercial real estate in South Florida, our team is here and we are ready to help. Contact the Martinez Team or give us a call at (954) 394-7078. We would be honored to help you with all of your commercial real estate needs in the Sunshine State.